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    3) Hull says a hedge portfolio is hedges against any movement of the underlying price. Doesn't...

    3) Hull says a hedge portfolio is hedges against any movement of the underlying price. Doesn't matter how large are the changes in underlying price. I am asked in a question, what is the effect of +/_ 1% and +/-10% on the hedged portfolio. Given what Hull says, would you suggest me to comment on...
    • Alizarr
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  2. A

    2) If yes, I believe the portfolio will not be hedged against down price movement of the...

    2) If yes, I believe the portfolio will not be hedged against down price movement of the underlying. Because the long call will be OTM while the future ITM. No payoff for option while the future is ITM and result in profit. Please correct me in i am wrong.
    • Alizarr
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  3. A

    Hello dear David! I am Ali.I am planning to take CFA 2. Now on hedging section, i got stuck...

    Hello dear David! I am Ali.I am planning to take CFA 2. Now on hedging section, i got stuck! Wandering if i can ask you a few questions on that. 1) Is it possible to have a delta neutral portfolio consisting of positions in long call option and future contracts?
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